G.J. Raja v. Tejraj Surana

Supreme Court of India(2019) 9 SCC 461

Bench: J. A.M. Khanwilkar, J. Dinesh Maheshwari

The Supreme Court held that Section 148 NI Act uses the word "shall" — the direction to pay a minimum of 20% of the fine or compensation awarded by the trial court is MANDATORY, not directory. The appellate court has no jurisdiction to dispense with this deposit. The only discretion the appellate court retains under Section 148 is to direct a deposit of MORE than 20% up to the entire amount if circumstances warrant. The provision was inserted to curb the widespread practice of filing appeals solely to delay payment to the cheque holder. The accused cannot be permitted to frustrate the legislative purpose by seeking a waiver of the deposit.